Certain Vertical Shaft Engines Be
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This document is scheduled to be published in the Federal Register on 01/11/2021 and available online at federalregister.gov/d/2021-00212, and on govinfo.govBILLING CODE: 3510-DS-P DEPARTMENT OF COMMERCE International Trade Administration [C-570-120] Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China: Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination AGENCY: Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and/or exporters of certain vertical shaft engines between 225cc and 999cc, and parts thereof (vertical shaft engines) from the People’s Republic of China (China). DATES: Applicable [INSERT DATE OF PUBLICATION IN THE FEDERAL REGISTER]. FOR FURTHER INFORMATION CONTACT: Andrew Huston, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482- 4261. SUPPLEMENTARY INFORMATION: Background The petitioners in this investigation are the Coalition of American Vertical Engine Producers and its individual members.1 In addition to the Government of China, the mandatory respondents in this investigation are Loncin Motor Co. (Loncin) and Chongqing Zongshen General Power Machine Co., Ltd. (Zongshen). 1 Individual members are Kohler Co. and Briggs & Stratton Corporation. On June 19, 2020, Commerce published in the Federal Register the Preliminary Determination of this investigation.2 On November 4, 2020, Commerce issued a Post- Preliminary Analysis.3 For a complete description of the events that followed the Preliminary Determination of this investigation, see the Issues and Decision Memorandum.4 The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at http://access.trade.gov. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the Issues and Decision Memorandum are identical in content. Scope of the Investigation The products covered by this investigation are certain vertical shaft engines from China. For a complete description of the scope of this investigation, see Appendix I. Period of Investigation The period of investigation is January 1, 2019 through December 31, 2019. Use of Adverse Facts Available In making this final determination, Commerce is relying on facts otherwise available, including adverse facts available (AFA), pursuant to section 776(a) and (b) of the Tariff Act of 1930, as amended (the Act). For a full discussion of our application of AFA, see the Preliminary Determination.5 2 See Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Negative Critical Circumstances Determination, and Alignment of Final Determination With Final Antidumping Duty Determination, 85 FR 37061 (June 19, 2020) (Preliminary Determination), and accompanying Preliminary Decision Memorandum (PDM). 3 See Memorandum, “Post-Preliminary Analysis of Countervailing Duty Investigation of Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China,” dated June 4, 2020. 4 See Memorandum, “Decision Memorandum for the Final Affirmative Determination and Final Negative Critical Circumstances Determination in the Countervailing Duty Investigation of Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). 5 We are making no changes to our application of AFA, and thus incorporate by reference our discussion from the Preliminary Determination. See PDM at “Use of Facts Otherwise Available and Adverse Inferences.” Analysis of Comments Received In the Issues and Decision Memorandum, we address all issues raised in parties’ case and rebuttal briefs. A list of the issues that parties raised, and to which we responded, is attached to this notice as Appendix II. Changes Since the Preliminary Determination Based on our review and analysis of the comments received from parties, we made changes to Loncin and Zongshen’s subsidy rate calculations. For a discussion of the changes, see the Issues and Decision Memorandum.6 All-Others Rate In accordance with section 705(c)(1)(B)(i)(I) of the Act, Commerce calculated a countervailable subsidy rate for the individually investigated exporters/producers of the subject merchandise. Consistent with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) of the Act, Commerce also calculated an estimated all-others rate for exporters and producers not individually investigated. Section 705(c)(5)(A)(i) of the Act provides that the all-others rate shall be an amount equal to the weighted-average of the countervailable subsidy rates established for individually investigated exporters and producers, excluding any rates that are zero or de minimis or any rates determined entirely under section 776 of the Act. In this investigation, Commerce calculated individual estimated countervailable subsidy rates for Loncin and Zongshen that are not zero, de minimis, or based entirely on facts otherwise available. Therefore, Commerce calculated the all-others rate using a weighted average of the individual estimated subsidy rates calculated for the examined respondents using each company’s publicly-ranged values for the merchandise under consideration.7 6 See Issues and Decision Memorandum at “Analysis of Programs.” 7 With two respondents under examination, Commerce normally calculates: (A) a weighted-average of the estimated subsidy rates calculated for the examined respondents; (B) a simple average of the estimated subsidy rates calculated for the examined respondents; and (C) a weighted-average of the estimated subsidy rates calculated for the examined respondents using each company’s publicly-ranged U.S. sale quantities for the merchandise under consideration. Commerce then compares (B) and (C) to (A) and selects the rate closest to (A) as the most appropriate rate for all other producers and exporters. See, e.g., Ball Bearings and Parts Thereof from France, Final Negative Determination of Critical Circumstances Commerce determines that critical circumstances do not exist within the meaning of 703(e)(1) of the Act. For further information, see Issues and Decision Memorandum. Final Determination In accordance with section 705(c)(1)(B)(i)(I) of the Act, we established individual estimated countervailable subsidy rates for Loncin, and Zongshen. Commerce determines the total estimated net countervailable subsidy rates to be the following: Producers/Exporters Subsidy Rate (percent) Loncin Motor Co. 17.75 Chongqing Zongshen General Power Machine Co. 19.29 All Others 18.72 Disclosure We intend to disclose to parties in this proceeding the calculations performed for this final determination within five days of the date of public announcement of our final determination, in accordance with 19 CFR 351.224(b). Continuation of Suspension of Liquidation As a result of our Preliminary Determination, and pursuant to sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of merchandise under consideration from China that were entered or withdrawn from warehouse, for consumption, on or after June 19, 2020, the date of publication of the Preliminary Determination in the Federal Register. In accordance with section 703(d) of the Act, we issued instructions to CBP to discontinue the suspension of liquidation for CVD Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Duty Administrative Reviews, Final Results of Changed-Circumstances Review, and Revocation of an Order in Part, 75 FR 53661, 53663 (September 1, 2010). As complete publicly ranged sales data were available, Commerce based the all-others rate on the publicly ranged sales data of the mandatory respondents. For a complete analysis of the data, please see the All-Others Rate Calculation Memorandum dated concurrently with this determination. purposes for subject merchandise entered, or withdrawn from warehouse, on or after October 17, 2020, but to continue the suspension of liquidation of all entries from June 19, 2020 through October 16, 2020. If the U.S. International Trade Commission (the ITC) issues a final affirmative injury determination, we will issue a CVD order and will reinstate the suspension of liquidation under section 706(a) of the Act and will require a cash deposit of estimated CVDs for such entries of subject merchandise in the amounts indicated above. If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled. International Trade Commission Notification In accordance with section 705(d) of the Act, we will notify the U.S. International Trade Commission (ITC) of the final